Special Mention by E. R. Palmer

Review and Herald Publishing Association · Takoma Park Station, Washington, D. C. · Aug 10, 1916

Special Mention

By E. R. Palmer

Increased Cost of Paper

The situation in the paper market is not improving. It is growing worse. The time is rapidly approaching when paper contracts will expire. It will then be necessary for publishers in general, who have not already done so, either to cut down the size of their periodicals or to increase subscription prices. It will be necessary also to increase the prices of books in all cases where new editions are required, which must be printed from paper at the advanced prices. Nearly all publishers are doing this. Notice has been sent out by publishers of periodicals and standard books, such as encyclopedias and Bibles, that on a certain date prices will be raised from 25 to 100 per cent.

In a brief article on page 2, of the REVIEW of June 15, some facts were presented concerning the situation. It will doubtless be of interest to learn some of the causes of this situation, and the prospects for the future. Two questions are of primary interest: 1. What are the causes of the increase in the price of paper? 2. Is the price likely to go down in the near future?

The Cost of Paper

The manufacturers of paper find themselves confronted by a situation far more serious than that which printers are having to face, for they are under contract for a certain period to furnish the principal part of their product at low prices. A number of these paper makers have already been forced into bankruptcy. The following are some of the conditions they are having to meet:—

1. Scarcity of labor, brought about by a falling off in immigration; the exodus of so many of our laborers to the European armies; and the demand for an increased number of men in nearly all lines of industry.

2. An increase in wages, ranging from five to twenty-five per cent. This increase is not greater than the increase in the cost of living, but it becomes an important factor in the cost of paper making.

3. Sulphite and soda pulp, two of the principal factors in paper making, now cost two and a half to three times the prices of last year.

4. Rags and other material used in the manufacture of high-grade paper have gone up from 300 to 400 per cent.

5. In the manufacture of smooth finish, high-grade papers, used in book-making, the fine, smooth surface is produced by the use of a certain quality of white English clay not procurable except in Great Britain. This clay serves very much the same purpose in paper making that starch does in the laundering of linen. Since the European war broke out, shiploads of this clay have been lying on the wharves in Great Britain, with no ships to take it to market. One of the enterprising American paper makers, from whom we obtain a large portion of our book paper, finding that he could not get this clay in the usual way, chartered a ship and sent it to Great Britain for a load of clay, which cost $100,000. It was impossible to get the ship unloaded within the contract period, and it was necessary to pay $700 a day for the extra time required.

6. Some of the materials which previously have entered into the making of paper are now used in the manufacture of explosives, thus cutting down the supply and increasing the price.

7. Important sources of the world's supply of paper under normal conditions, have been closed up; and many countries are now looking to the United States for paper. For example, we are now supplying paper to our mission printing offices in South Africa, Argentina, Brazil, the West Indies, and India, where the market price of paper is much higher than in the United States.

8. The countries now involved in war have placed an embargo upon materials that can be used in the manufacture of paper, thus cutting off from the United States several of its previous sources of supply.

The Future Cost of Paper

The future no one can tell. If we knew what conditions would prevail a few months hence, it would then be easier to decide what to do to meet the situation. At the present time it appears that prices will go higher rather than lower.

The situation is so acute that the United States government has appointed a Federal Trade Commission to make an investigation. The government has also issued a circular which contains the following interesting statement:—

“Old papers and rags are used in very large quantities for manufacturing paper. Part of this material is collected in the United States, although the imports are about 50 per cent of the amount used each year. Imports of rags and old papers during the past few months have decreased to such an extent that there is now a serious famine of paper-making raw material. The decrease in imports is very largely due to conditions abroad. Several foreign governments, realizing the scarcity of paper-making material, have forbidden its export to other countries. This condition is widespread in its effect, and as the demand for raw material is greater than the supply, prices have rapidly increased. The prices of these raw materials have increased from 50 to over 400 per cent above normal prices and are still advancing.”

“The effect of this rapid increase in cost of all paper-making raw materials has been to make corresponding increases in the cost of all kinds and grades of paper. Prices of paper are advancing, and apparently there is as yet no prospect in sight of any decrease in price to the ultimate consumer. All indications tend toward still greater increase in price.”

On an average the prices of paper in the United States have not quite doubled, but it is a well-known fact that if paper mills were today buying their raw materials, such as rags, white pulp, dyestuffs, bleach, and other chemicals, at market prices, they would go bankrupt if they were to sell their product even at the present high-selling prices of paper. It is only because these paper mills have contracts for raw materials, made last year and expiring in December of this year, that they are able to operate and sell paper at present prices. Therefore, if the war continues, there is every reason for believing that the prices of raw materials will continue to increase, and that paper makers must pay market prices for raw materials after the expiration of their present contracts.

Every day it is getting more difficult for workmen to live on the present scale of wages. If the cost of living continues to advance, wages must certainly increase. With the United States still at peace, and having great resources upon which to draw, and with many great countries looking to the United States for their supply, it seems probable that this will be a country of high prices for some time to come. We cannot be positive, however, concerning this trying situation. No one knows what is before us in the markets of the world. We can only trust all features of our work in the hands of God, who knows the end from the beginning. We can only judge from appearances what the future has in store, and what steps may be necessary to meet the situation.

What Should be Done

It is, we believe, the unanimous purpose of our publishing houses to meet the situation, so far as possible, without increasing the prices of books and periodicals. If the situation continues as it has been for the past few months, something will of course have to be done in the near future, and we know that our people will meet with faith and courage whatever may be necessary.

In the countries that are at war, where materials are very scarce and expensive, restrictions have been placed upon the size even of newspapers. In France a law has been passed restricting daily newspapers to four pages, and Sunday papers to six pages. When such extraordinary measures are necessary in other

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Increased Cost of Paper

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countries, it would not be strange if we here in America should find it necessary to make some important adjustments during the next few months.

But we are persuaded that the Lord's work will not be hindered. It is moving forward with greater success every day, notwithstanding the terrible things that are going on in the world. The time has come for God to finish his work. His people should be of good courage, and should press the battle with greater earnestness as the difficulties and dangers in the world increase.

E. R. Palmer.